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Judicial Watch Reveals 'Smoking Gun' Documents for IRS Scandal

The documents reveal that the stalling of conservative applications was directed from the IRS Headquarters in Washington DC and Michigan Senator Carl Levin pressured the IRS to target tax-exempt conservative groups.

Judicial Watch has released documents that may turn out to be the "smoking gun" for the IRS scandal involving the targeting of conservative groups applying for 501(C) (3) status. The documents reveal that the stalling of conservative applications was directed from the IRS Headquarters in Washington DC and Michigan Senator Carl Levin pressured the IRS to target tax-exempt conservative groups.

Just as they did with the recent Ben Rhodes email which advanced the investigation of the Benghazi scandal, Judicial Watch received these documents by winning a h Freedom of Information Act (FOIA) lawsuit filed after the IRS refused to answer four FOIA request.

An email string from February – March 2010 includes a message from a California EO Determinations manager discussing a Tea Party application “currently being held in the Screening group.” The manager urges, “Please let ‘Washington’ know about this potentially embarrassing political case involving a ‘Tea Party’ organization. Recent media attention to this type of organization indicates to me that this is a ‘high profile’ case.” A co-worker responds: “I think sending it up here [DC] is a good idea given the potential for media interest.”

Like the Ben Rhodes Benghazi email, the above email string was already provided to congress, this version however does not have as many redactions as the congressional version.

One key email string from July 2012 confirms that IRS Tea Party scrutiny was directed from Washington, DC. On July 6, 2010, Holly Paz (the former Director of the IRS Rulings and Agreements Division and current Manager of Exempt Organizations Guidance) asks IRS lawyer Steven Grodnitzky “to let Cindy and Sharon know how we have been handling Tea Party applications in the last few months.” Cindy Thomas is the former director of the IRS Exempt Organizations office in Cincinnati and Sharon Camarillo was a Senior Manager in their Los Angeles office. Grodnitzky, a top lawyer in the Exempt Organization Technical unit (EOT) in Washington, DC, responds:

"EOT is working the Tea party applications in coordination with Cincy. We are developing a few applications here in DC and providing copies of our development letters with the agent to use as examples in the development of their cases. Chip Hull [another lawyer in IRS headquarters] is working these cases in EOT and working with the agent in Cincy, so any communication should include him as well. Because the Tea party applications are the subject of an SCR [Sensitive Case Report], we cannot resolve any of the cases without coordinating with Rob."

The reference to Rob is believed to be Rob Choi, then-Director of Rulings and Agreements in IRS’s Washington, DC, headquarters.

An email from Lois Lerner, dated April 2, 2013, tried to explain the “Be on the Lookout” (BOLO) red flags used to select conservative organizations for screening and scrutiny:

Because the BOLO only contained a brief reference to “Organizations involved with the Tea Party movement applying for exemption under 501(c)(3) and 501(c)(4)” in June 2011, the EO Determinations manager asked the manager of the screening group, John Shafer [IRS Cincinnati field office manager], what criteria were being used to label cases as “tea party ” cases. (“Do the applications specify/state ‘ tea party’? If not, how do we know applicant is involved with the tea party movement?”) The screening group manager asked his employees how they were applying the BOLO’s short –hand reference to “tea party.” His employees responded that they were including organizations meeting any of the following criteria as falling within the BOLO’s reference to “tea party” organizations: “1. ‘Tea Party’, ‘Patriots’ or ’9/12 Project’ is referenced in the case file. 2. Issues include government spending, government debt and taxes. 3. Educate the public through advocacy/legislative activities to make America a better place to live. 4. Statements in the case file that are critical of the how the country is being run. . . “

So, we believe we have provided information that shows that no one in EO “developed” the criteria. Rather, staff used their own interpretations of the brief reference to “organizations involved with the Tea Party movement,” which was what was on the BOLO list.

There was also a presentation entitled “Heightened Awareness Issues” with a red and orange “Alert” symbol identifying the “emerging issues” that trigger scrutiny for organizations seeking tax-exempt status. One page of the presentation focuses on the Tea Party organizations because it says, these groups had become a “Relevant Subject in Today’s Media.”

A series of letters between Senator Levin (D-MI), chairman of the Subcommittee on Investigations, and top IRS officials throughout 2012 discuss how to target conservative groups the senator claimed were “engaged in political activities.” In response to a Levin March 30 letter citing the “urgency of the issue,” then-Deputy Commissioner Steven Miller assured the senator that IRS regulations were flexible enough to allow IRS agents to “prepare individualized questions and requests” for select 501(c)(4) organizations.

The newly released IRS documents contain several letters and emails revealing an intense effort by Levin and IRS officials to determine what, if any, existing IRS policies could be used to revoke the nonprofit exemptions of active conservative groups and deny exemptions to new applicants. In a July 30, 2012, letter, Levin singles out 12 groups he wants investigated for “political activity.” Of the groups – which include the Club for Growth, Americans for Tax Reform, the 60 Plus Association, and the Susan B. Anthony List – only one, Priorities USA, is notably left-leaning.

The documents discussed above as well as other documents released by Judicial Watch indicate that key Washington personnel of the IRS were involved in the decisions to delay the 501(c)(3) applications of conservative tea party organizations and at least one Democratic Party Senator was doing his best to pressure the IRS to make those targeting decisions.

Once again Judicial Watch has proven that a scandal called bogus by Democrats, is worth much further and closer investigation.